{
  "slug": "derivatives-options",
  "name": "Derivatives & Options",
  "description": "Contracts whose value is derived from an underlying — options, futures, forwards, swaps, structured notes — including their pricing, hedging, and risk decomposition.",
  "long_description": "The derivatives domain covers the full suite of contingent claims and forwards/futures used by hedge funds for hedging, speculation, capital efficiency, and the construction of bespoke risk profiles. It includes vanilla and exotic options pricing (Black-Scholes, local-vol, stochastic-vol, jump-diffusion), futures basis and roll mechanics, interest-rate swaps, credit default swaps, total-return swaps, variance swaps, and the Greeks framework that underpins risk management.",
  "icon": "function",
  "color": "#6EB0E2",
  "child_categories": [
    "options",
    "futures",
    "swaps",
    "credit-derivatives",
    "structured-products"
  ],
  "key_concepts": [
    "Black-Scholes",
    "Greeks",
    "implied volatility",
    "delta-hedging",
    "variance swap",
    "skew",
    "term-structure"
  ],
  "core_questions": [
    "How is an option priced under the Black-Scholes model?",
    "What are the Greeks and how are they used in hedging?",
    "What is the volatility surface and why does the smile exist?",
    "How does a variance swap differ from an option?",
    "What is the difference between a CDS and a TRS?"
  ],
  "related_categories": [
    "quantitative-finance",
    "risk-management",
    "trading-execution"
  ],
  "further_reading": [
    {
      "title": "Options, Futures, and Other Derivatives",
      "author": "John C. Hull",
      "year": 2017,
      "isbn": "9780134472089"
    },
    {
      "title": "Volatility Trading",
      "author": "Euan Sinclair",
      "year": 2013
    },
    {
      "title": "Dynamic Hedging",
      "author": "Nassim Nicholas Taleb",
      "year": 1997
    }
  ],
  "term_count": 162,
  "key_terms": [
    "accreting-swap",
    "accumulator",
    "american-option",
    "asian-option",
    "at-the-money",
    "automatic-exercise",
    "average-rate-option",
    "back-months",
    "back-spread",
    "backwardation",
    "barrier-option",
    "basis",
    "basis-swap",
    "bear-spread",
    "bermuda-option",
    "binary-option",
    "binomial-tree-model",
    "black-scholes-model",
    "box-spread",
    "bull-spread"
  ]
}